U.S. Stocks 

Fundamental Analysis: 

U.S. stocks closed lower on Tuesday, 6th December 2022, as the S&P 500 fell for a fourth straight session, with investors nervous about a Federal Reserve rate hike and more talk of an economy about to fall into recession.

Technology companies were generally affected as the market was wary of high-growth stocks that have underperformed in a challenging economy.

Apple, Amazon and other tech giants fell anywhere from 2.5%-3% as the tech-dominated Nasdaq closed lower for the third straight session.

Most of the 11 major sectors in the S&P 500 index fell, led by energy stocks, communication services stocks and technology stocks.

Utilities stocks were the only sector to gain, up 0.7%, a defensive stock that is usually favored in times of economic uncertainty.

The market focused on forecasts for future economic growth on Tuesday after several financial giants made statements indicating uncertainty about the future.

The market is reassessing the future path of interest rate hikes amid concerns about economic growth, following days of strong U.S. employment and services data.

Bets in the money market show a 91% chance that the Fed will raise rates by 50 basis points at its 13th – 14th December 2022 policy meeting, with rates expected to peak at 4.98% in May 2023, up from 4.92% projected on Monday before the services data was released.

The S&P 500 rose 13.8% in October and November as the market pinned expectations that the Fed would scale back rate hikes and better-than-expected corporate results.

However, the U.S. will release more data on Friday, including the Producer Price Index (PPI), which could weaken such expectations.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow today pays attention to the 33390-line. If the Dow runs stably above the 33390-line, then pay attention to the suppression strength of the 33949 and 34221 positions.

Hong Kong Stocks 

Fundamental Analysis: 

The three major indices of Hong Kong stocks closed up collectively at noon, with Hang Seng Index (HSI) up 0.15%, Hang Seng TECH Index (HSTECH) up 1.37%, and Hang Seng China Enterprises Index (HSCEI) up 0.23%.

The half-day net southbound capital inflow was 1.588 billion Hong Kong dollars, the market turnover was 90.3 billion Hong Kong dollars. 

On the market, the weighted technology stocks rose generally, Bilibili Inc. (9626.HK), Kuaishou Technology (1024.HK) rose 3%, Baidu, Inc. (9888.HK) rose 1%, Meituan (3690.HK), Tencent Holdings Limited (0700.HK) followed up.

Recently, Macau has optimized the anti-epidemic measures for entering the mainland, overlapping agencies across the board up the target price of gambling stocks.

Macau gambling stocks continue to rise, and Wynn Macau’s stock price doubled for 8 days in a row.

Hainan’s inter-provincial policy adjustments, Hainan Meilan International Airport Company Limited (0357.HK) rose 6%, leading the airlines.

Dining in resumed orderly in Beijing yesterday, F&B stocks rose across the board, Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (0520.HK), rose 6%

Pharmaceutical stocks, tourism stocks, auto stocks and other stocks rose collectively.

In addition, domestic housing stocks fell in front. Shipping prices fell sharply, and shipping stocks weakened.

Overnight, the U.S. oil fell 4.5% to a new one-year low, and oil stocks fell in general. Gold stocks, coal stocks and other stocks sank.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 pays attention to the 18606-line today. If HK50 can run stably above the 18606-line, then pay attention to the suppression strength of the two positions of 19517 and 20467.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 pays attention to the 12900-line today. If A50 runs stably below the 12900-line, pay attention to the support strength of the two positions of 12659 and 12273. If A50 runs above the 12900-line, it will open up further upside space.

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